The Bank of England’s newest policy maker Megan Greene warned that interest rates may settle at higher levels permanently as a wave of green and artificial intelligence investments promises to boost economic growth. Greene cautioned against complacency in the fight against inflation and questioned claims that the long-run neutral interest rate remains at its pre-pandemic lows despite a painful surge in prices. “It would be a mistake for central bankers to take comfort in the notion that inflation and rates will automatically go back to the low levels we saw before the pandemic,” she wrote in an article in the ... (full story)